CINCINNATI, OHIO QUESTION -- Kerry and the Chiquita "Banana War"

THOMAS ^ | June 12, 1990 | Kerry

[TFine80]

A BANANA WAR IN HONDURAS (Senate - June 12, 1990)

[Begin insert] Mr. KERRY. Mr. President, I would like to bring to the attention of my colleagues to a serious situation which has been developing into a crisis for Honduras. The crisis involves a group of small independent banana growers in Honduras who are trying to break a virtual monopoly enjoyed by Chiquita Brands International, based in Cincinnati, OH.

In recent months, the world market for bananas has been expanding dramatically, particularly with the opening of the Eastern European markets. Over the past several months, small banana growers in Honduras have tried to sell their produce to these and other European markets to meet the growing demand for fresh fruit abroad and to improve their own financial situation.

However, according to published reports, Chiquita has effectively blocked these small growers' trade expansion efforts, in some instances with armed force, in others, through manipulation of Honduran courts. The result: Bananas bound for Europe never leave the country; they are left to rot in the trains that transported them from the farm to port; the growers lose millions of dollars; and Honduras' economy suffers as the export of one of its greatest revenue earners comes to a halt.

The 1990 banana conflict is clearly reminiscent of the years during which Honduras and other Central American countries were known as banana republics. During that era, multinational corporations colluded with military dictators to exercise monopoly control over the region's agricultural production. Today, this dispute threatens to destroy newly elected Honduran President Rafael Callejas' efforts to expand international trade and investment in his country.

The banana war in Honduras is now more than 100 days old. Despite multimillion-dollar losses to growers and the Government of Honduras, the dispute is expected to continue for some time.

The independent growers have sought to break away from Chiquita because they claim the company has not lived up to a contract dating back to the mid-1970's. Ilsa Diaz, the owner of a Honduran export company, which has become the focus of the new banana war, says that Chiquita promised to pay the growers in United States dollars and to boost payments to the growers on a regular basis.

Instead, Diaz points out that Chiquita has paid the growers in the less favorable Honduran Lempira and has kept prices far below what competitors are willing to pay. An Irish-owned fresh fruit distributor recently paid Diaz $4.40 per box of bananas; Chiquita was paying less than $2 per box.

Mr. President, the action of Chiquita in Honduras conjures up an era of multinational corporate venality which, in the past, provoked considerable anti-North American sentiment throughout Latin America. Chiquita's actions in Honduras undermine United States foreign policy interests in the region.

[TFine80]

It was one thing to note the problem. It was another to suggest that Chiquita was acting like an imperial United Fruit Co.

Does anyone in Ohio know anybody who worked at Chiquita? Of course, this was not a clean business, but I think that Kerry's comments here and attempt to slander crossed Chiquita the line.

[TFine80]

Excuse me. His attempt to slander Chiquita crossed the line.

[ValerieUSA]

If I remember correctly, you have a Chiquita - or were you just happy to see me?
uhhh... I mean you have a relative who is involved with Chiquita.

[Buckeye Battle Cry]

Chiquita was, until very recently, owned by Carl Lindner. He is a billionaire here in Cincinnati who, over the years, has contributed heavily to Republican party causes in general and the Bush family in specific.

That's why Kerry feels safe attacking Chiquita - he's not risking any backroom arrangements or sweetheart deals.

[TFine80]

I see... Well, it is still interesting that Kerry himself decided to make a big deal of this. He also put 3-4 articles in the Congressional Record about it.

Must be a fruit of his Daniel Ortega days.

[McGavin999]

Well, I'm not in Ohio, and I don't know anyone who works for Chiquita, but I do know that they were the only bananas you could buy that didn't turn brown the next day.

[JimC214]

A banana war? Where's Chesty Puller when you need him.

[operation clinton cleanup]

Thats no banana, I'm happy to see you! My "relatives" sold that business several years ago... as I found out when I tried to get a job there last spring.